May 17 , 2006

QSGI Awarded $1.6 Million of Additional Data Center Maintenance Contracts

HIGHTSTOWN, NJ—May 17, 2006—QSGI, Inc. (NYSE Arca: QGI) (PCX: QGI) the only data security and regulatory compliance provider offering a full suite of life-cycle services for a corporation’s entire IT platform, today announced that it has been awarded 3 additional contracts for its Data Center Maintenance division, which are estimated to generate approximately $1.6 million in additional annual revenue.

Marc Sherman, chairman and CEO, stated, “Our Data Center Maintenance division continues to show steady growth in recurring monthly revenue maintenance contracts. This division, which generated strong gross margins in the first quarter, can continue to improve its margins as we add new mainframe services contracts within close geographic proximity. In addition, both our Data Security & Compliance division and our Data Center Hardware division are off to a strong start in the second quarter. As a result, we are encouraged by the outlook for continued top and bottom-line improvement in the second quarter and balance of 2006.”

About QSGI
QSGI is the only data security and regulatory compliance provider offering a full suite of end-of-life and other life-cycle services for a Fortune 1000 corporation’s and government client’s entire information technology (IT) platform. QSGI offsets its clients’ expenses through its value-added remarketing program. Prior to resale, the company utilizes its proprietary Department of Defense (DOD) level certified data sweep to eliminate otherwise recoverable data. QSGI reduces its clients' potential liability by ensuring regulatory and environmental compliance for IT products. QSGI also maintains and provides services on enterprise-class hardware, including mainframes, midrange servers, tape storage products and disk storage products. Given the sensitive nature of the company’s client relationships, it does not provide the names of its clients.

Statements about QSGI’s future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. QSGI intends that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and QSGI’s actual results could differ materially from expected results. QSGI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.